Dec. 3 (Bloomberg) -- European stocks climbed, following
their longest stretch of monthly gains in six years, as two
measures of Chinese manufacturing increased and Greece offered
to spend 10 billion euros ($13 billion) buying back bonds.

The Stoxx Europe 600 Index advanced 0.1 percent to 276.13
at the close in London as four stocks rose for every three that
fell. The equity benchmark has rallied 18 percent from this
year’s low on June 4 as the European Central Bank announced an
unlimited bond-buying plan and the Federal Reserve started a
third round of asset purchases.

“Greece has made quite a bit of progress,” said Philippe
Gijsels, head of fixed-income research at BNP Paribas Fortis in
Brussels. “If Greece can manage the buyback and get a new
tranche of aid, then the Greece problem will be out of the way
until the end of 2013. China is clearly improving and this is
helping equities and commodities. We’re in a sweet spot for the
next two to three months.”

China’s official Purchasing Managers’ Index, a gauge of
manufacturing, rose to 50.6 in November, the highest in seven
months, the National Bureau of Statistics and China Federation
of Logistics and Purchasing said on Dec. 1. A reading above 50
indicates expansion.

A separate survey by HSBC Holdings Plc and Markit
Economics, which focuses on smaller businesses, today showed
that activity increased last month.

Debt Buyback

Greece’s Public Debt Management Agency invited investors to
tender bonds, offering an average maximum purchase price for
securities maturing from 2023 to 2042 of 34.1 percent. The offer
period ends on Dec. 7.

Chancellor Angela Merkel opened the possibility that
Germany will ultimately accept a write-off of Greek debt.

Merkel told Bild newspaper yesterday that euro-area leaders
might consider writing off debt once the country has a budget
surplus. The chancellor had ruled out such a scenario as
violating European Union treaties.

European equities will rally in 2013 with the Euro Stoxx 50
Index reaching 3,000, according to Bank of America Corp. The
price-to-earnings ratio for the gauge of the 50 biggest stocks
in the euro area will climb to 11.8 by the end of next year,
strategist John Bilton wrote in a note. The companies were
valued at 11.1 times estimated earnings on Nov. 30, according to
data compiled by Bloomberg.

U.S. Manufacturing

In the U.S., a report showed that manufacturing
unexpectedly contracted in November. The Institute for Supply
Management’s factory index slipped to 49.5 from 51.7 in October.
The median economist estimate had called for a reading of 51.4,
according to a Bloomberg News survey.

CWC, Colruyt

CWC rose 1.2 percent to 35.1 pence, its biggest increase in
three weeks. Bahrain Telecommunications, the state-controlled
company known as Batelco, agreed to pay $680 million. Batelco
said it will acquire CWC’s businesses in the Maldives, Channel
Islands and Isle of Man, Seychelles, South Atlantic and Diego
Garcia as well as 25 percent of Cie. Monagesque de
Communications SAM. Cie. Monagesque de Communications holds
CWC’s 55 percent stake in Monaco Telecom.

Colruyt lost 1.9 percent to 34.71 euros after Belgium’s
biggest discount food retailer posted first-half Ebit of 230.8
million euros. The average analyst estimate had called for
earnings of 236.9 million euros. Exane BNP Paribas cut its
share-price forecast by 3 percent to 31 euros.

Alcatel-Lucent SA advanced 2.3 percent to 86.1 euro cents.
The unprofitable network-equipment supplier has short-term
upside because of its potential for asset sales and refinancing,
according to Deutsche Bank AG. The brokerage raised its price
forecast by 25 percent to 1 euro.

Akzo Nobel NV rose 1.8 percent to 44.73 euros. Chief
Executive Officer Ton Buechner pledged to return to his post and
deliver an update on the company’s strategy following sick leave
for fatigue. Buechner and supervisory board member Antony
Burgmans will hold a conference call with investors and analysts
on Dec. 14, the company said.

Mediaset SpA jumped 6.7 percent to 1.36 euros, the biggest
advance on the Stoxx 600. JPMorgan Chase & Co. reiterated its
overweight recommendation, a rating similar to buy, on the
broadcaster controlled by former Italian Prime Minister Silvio
Berlusconi.